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How about reusable shopping bags for grocery shopping? You can use a plastic shopping bag as a pattern. Drink coasters might also be good, especially with the warm weather coming. Nothing is worse than a sweaty glass ruining your table.

A simple reversible bag with contrasting fabrics and long strap( with a pocket if you wanted to get a little fancier) if you make them small they can be little girls carry all bags ( aka play purse ) and if you have priced these in stores they are EXPENSIVE!

You can also use old blue jeans to make dresses, bags or a multitude of other items ( this only works if your machine can handle it.. some of the newer machines trying to go through to thick of fabric can bend or break internal parts.. I learned this the hard way!!)

I don't have the exact title of the book, but there is a book of designs for sock creatures - from bunnies to penguins to cats. They are adorable depending on the sock design you use, you can make them from sock orphans (i asked on freecycle and got piles), and you can make sock mice from the smaller parts. Fairly easy to follow, I am not the best sewer and I made some killer penguins out of mens dress socks! It may just be called "sock creatures". They would sell best around holidays, but are very easy, and if you use "post consumer" socks and buttons you can sell them as upcycled craft (some yuppies will spend more on stuff like that)

Although this project is listed as a kids sewing, I think it would do well at craft fairs. Little ones always need that extra support in stroller or car seat. You could do in fun colors/patterns and gain experience

What great links you guys have up. I have also been goggling different things to make and found myself making a yamaka. I also made an ipad over that did not take very long. There a several parts to it but it makes really easy even for a beginner like me.